Address in Reply

ADDRESS IN REPLY

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (17:34): I bring up the report of the committee appointed to prepare a draft Address in Reply to His Excellency the Governor's speech:

May it please Your Excellency—

1. We, the members of the Legislative Council, thank Your Excellency for the speech with which you have been pleased to open parliament.

2. We assure Your Excellency that we will give our best attention to all matters placed before us.

3. We earnestly join in Your Excellency's desire for our deliberations to serve the advancement of the welfare of South Australia and all its people.

The Hon. CARMEL ZOLLO (17:36): I move:

That the Address in Reply as read be adopted:

As a member of the committee I add my congratulations to His Excellency Rear Admiral Kevin Scarce for his address on the occasion of the opening of the Second Session of the 52^nd Parliament. Both His Excellency and Mrs Liz Scarce represent the state with distinction and diligence. Their public spirit sees them both committed to many good causes as patrons, as well as representing our state on the occasion of official functions with a high sense of duty. I know they are admired by all who meet them. I welcome the news that His Excellency has accepted the invitation of the Premier, the Hon. Jay Weatherill, to stay on as Governor of South Australia for a further two years.

I believe this is the first formal opportunity the chamber has had to welcome our new member of parliament who filled the vacancy left by the Hon. Paul Holloway on his retirement. The Hon. Gerry Kandelaars has, for lack of a better expression, simply slotted into his new career with a minimum of fuss and is already respected as a competent and hardworking individual. I wish him well in his future career in this place.

We have had a number of occasions to get up in the chamber for condolence motions, and I again extend my sympathies to the families of former members and distinguished South Australians who have passed away since the commencement of the last parliament.

I would like to take the opportunity to talk to some of the government's new initiatives, as well as the progression and completion of projects. His Excellency the Governor in his address talked about the seven primary areas of focus for action that this government has identified. I think it very appropriate, after 10 years of government, for us to comprehensively review where the state now stands and make those decisions about where our focus needs to be in the future. I know we all want a brighter future for our children and future generations.

The mining boom and its benefits is one of the identified areas. I think it is important to place on the record the passing of the Olympic Dam indenture legislation. The passing of the legislation late last year ratified the Roxby Downs Indenture Bill which allows BHP Billiton to begin its $1.2 billion initial works on the project. I think that, rather than try to rephrase or rebadge the Premier's words, I will quote from his media release of 29 November 2011, which states:

The project will transform South Australia by bringing unprecedented wealth and economic opportunity to the state well into the next century.

It is hoped that the expansion will generate up to 6,000 new jobs during the 11-year construction period and some 4,000 full-time jobs then needed when the mine reaches its full potential. With an industry of this size, there will also be many thousands of further indirect jobs created in flow-on industries and services.

His Excellency in his speech outlined the government's commitment to establish a Future Fund so as to ensure that the benefits of our mining boom will be rightly shared amongst all South Australians for generations to come. Besides Olympic Dam we now have 19 mines in operation and it is an area which this government has worked hard to see greater prosperity for our state. We heard yesterday in the Governor's address that mineral exports are increasing at a rate unheard of in our history. Last financial year, they earned our state $4.22 billion, an increase from $2.85 billion only a year before. The future for mining as a whole is indeed looking bright.

Continuing on with the economic theme, I think it is also important to place on the record South Australia's strong growth over the past 12 months. Data released by the Australian Bureau of Statistics shows that in 2011 South Australia recorded its highest ever export numbers, coming in at $12 billion. This equates to a growth rate of 29 per cent for the year, more than double the growth rate for the nation and more than any other state. It is a testament to the hardworking people of South Australia, who continue to design, create and grow products of a truly international standard.

Another historical milestone that I believe should be placed on the record was the ability for South Australians to begin receiving desalinated water through their taps for the first time in mid-October last year. The $1.83 billion project is on track for its overall completion by the end of December 2012.

The Hon. D.W. Ridgway interjecting:

The Hon. CARMEL ZOLLO: I know that in this chamber the desal plant has its detractors—indeed, the Hon. David Ridgeway, I guess, is just proving that—but the majority of South Australians are very pleased that our state has a secure water supply, completely independent of climatic conditions.

At this time, given our somewhat unusual cooler weather (although, not today, I have to say) and in some states regrettably very wet weather and the heartache that floods bring, the severe drought our state and the rest of Australia suffered recently might be forgotten; history, however, informs us differently. For those who are interested in the progress of the desal plant, there is a very good short article in the Water for Good 2012 Summer News, which explains the manner in which the treated water is stored and delivered.

The recent drought leads me to the next topic of grave importance to this state: the Murray-Darling Basin plan and Premier Jay Weatherill's commitment to grasp this once in a lifetime opportunity to secure the long-term health of the Murray-Darling Basin in a manner that does not disadvantage South Australia. Needless to say, South Australia is concerned that the 2,705 gigalitre figure in the draft basin plan is insufficient to achieve a healthy river system. We are seeing that debate occurring right now.

Minister Caica recently reminded us of some of the extraordinary measures we were forced to take to protect our precious ecosystems and aquatic life and prevent acidification of soils. I am sure honourable members will remember the government having to scope the possibility of building a weir to prevent the salinity contaminating the water supply for Adelaide and several towns. The idea was not without controversy and some healthy debate. I am certain that we do not want to be in that position again. The Premier has made it quite clear that South Australia will continue to fight for its right for its fair share of water.

The issue of General Motors has dominated the media for several months, and I believe that it needs to be placed on the record that this state government and the federal government are committed to keeping car manufacturing here in South Australia. Our state has had a long and proud association with the car manufacturing industry—

The Hon. D.W. Ridgway interjecting:

The Hon. CARMEL ZOLLO: In case you didn't notice, the state government did try to assist them as well—in particular, General Motors-Holden which, since 1931, has seen South Australia as an essential element of its Australian operations. This commitment was reinforced when the company centralised all its assembly operations to its plant at Elizabeth. Through its operations at Elizabeth, Holden directly and indirectly supports over 8,000 automotive sector jobs and many more flow-on jobs throughout the South Australian economy.

Additionally, a strong manufacturing industry also promotes a strong research and development sector within the state. These are skills and knowledge that would be lost if car manufacturing were to cease, causing negative flow-on effects for smaller manufacturers in this state, ultimately resulting in their moving operations out of South Australia. That is why the federal Labor government, in partnership with the South Australian government, is negotiating a package to enable Holden to become more sustainable in the long term. I urge those opposite to look at the big picture and support the government's bid to ensure that South Australia retains a strong car manufacturing sector and with it a strong manufacturing base here in South Australia.

As is to be expected, the state is continuing with its massive infrastructure build, and I would like to mention a couple of those projects—firstly, the Southern Expressway where work has commenced. The construction of the $407 million duplication of the Southern Expressway has begun, and it is expected that the expressway, to carry traffic in either direction 24 hours a day seven days a week, will be ready by mid-2014. Those living in the south and those of us visiting the south will benefit enormously. It is a tremendous boost for the southern region.

I also make mention of the state's first elevated road, the South Road Superway project, at a cost of $812 million. The new roadway will be elevated 17 metres above the existing South Road. Minister Conlon announced in his media release that, when complete in December 2013, the project will deliver a 2.8-kilometre elevated roadway, providing benefits for freight and commuter traffic, with excellent connections to the existing road network and a reduction in travel times of up to seven minutes. It is a state and federal government investment and a tremendous example of joint infrastructure investment.

At long last, a world-class stadium will be available to South Australians on the redeveloped Adelaide Oval. Apart from bringing cricket and football to one smart site, the 50,000-seat venue will also be able to host a range of major events. I am certain that all will be looking forward to March 2014 when the redeveloped Adelaide Oval is scheduled to host its first AFL game. The rejuvenated Riverbank Precinct will be enhanced by the new Adelaide Oval and the Riverbank bridge that will link the two. I believe this redevelopment slots in well with another identified area of focus, bringing life to the centre of our city—a vibrant city for all to enjoy when we visit, no matter where we live.

I have had the opportunity to speak on the exciting new RAH build before, but it was great to see the official 'ground breaking ceremony' on the site in the second half of last year. The overwhelming majority of South Australians will welcome the provision of this world-class care for all South Australians. I also think that it is worthwhile reiterating that it is not just that South Australians are getting a brand-new Royal Adelaide Hospital but that the government is building up services and infrastructure in every metropolitan public hospital, as well as investing in country hospitals so that people are looked after as close as possible to their homes. For those whose conditions are complicated or acute, the RAH will continue to be there for them. All South Australians, no matter where they live, will benefit from a new-built RAH.

On top of the list of the focus for action was a 'clean, green food industry'. Initially as a parliamentary secretary, and since, I have had the opportunity at different times to be involved in several councils and committees representing the government in its endeavours to partner with the private sector to see a sustainable and viable food industry that the industry and all of us can be rightly proud of. We do have great credentials in terms of our produce and the clean and green pristine environment in which it grows. I could not agree more that we 'need to involve all sectors that intersect with our food production system'.

Following the last election, the planning minister, John Rau, announced that he would be bringing in legislation to protect the iconic South Australian districts of the Barossa and McLaren Vale. Consultations have occurred and are still occurring to ensure that these two districts are protected from other developments that could see these 'brands', for lack of a better expression, threatened as world-renowned food and wine regions.

His Excellency the Governor talked about the food industry sustaining our state from the earliest days of European settlement, and it continues to be an important industry, contributing more than $12.4 billion to our state economy and employing more than 135,000 workers or 17 per cent of the state's employed workforce.

Another focus that His Excellency mentioned was safe and active neighbours. In recent months I am sure all in this chamber have been well aware that the general public has been put in harm's way by an extremely public turf war between bikie gangs. It appears members of these gangs have very little regard for human life, especially that of innocent members of our community, and I am proud to be a member of a government that, since it was elected to office in 2002, has instituted a 'get tough' policy towards bikie crime, giving our law enforcement officers the tools to take on the bikie gangs.

However, as inevitably happens, these gangs find new ways to try to manoeuvre around the law. Attorney-General John Rau has reintroduced—or is in the process or introducing—legislation in the other place to crack down on bikie gangs, and I urge those opposite to stop playing games and support the government in its measures. I had the opportunity to read the Attorney-General's media release just before coming into the chamber. It stated:

The anti-crime measures will strengthen existing laws to combat organised crime, create a series of new offences to damage the organisational capacity of crime gangs, and encourage and protect witnesses.

As I previously mentioned, the new legislation 'also repairs anti-association measures which were struck down by the High Court in two separate decisions, the most recent in June last year'.

In relation to the area of early childhood, this priority area is one that Premier Weatherill is passionate about and one that he has spoken of and focused on since becoming Premier. Child development now has its own portfolio. We would all be aware that 90 per cent of a child's brain development occurs in the first few years of life.

His Excellency outlined in his address that the government will bring legislation to parliament to articulate and entrench the importance that this government places on children and families. I am certain that none of us would disagree that investment in our youngest citizens should be of the highest priority, because it is only through that early investment that we will see lasting improvements in the lives of our citizens.

I would like to take this opportunity to pass on my best wishes to two former esteemed colleagues of mine, the former premier the Hon. Mike Rann and former deputy premier and treasurer the Hon. Kevin Foley. For many years they served us with dignity and distinction. They both fought hard for the economic well-being of our state, and regrettably making tough decisions can bring a price to pay. I wish them both well in their future endeavours.

In the next few weeks we will see the formal election, by way of declaration, of two new female members of the House of Assembly: Zoe Bettison, representing the electorate of Ramsay, and Susan Close, representing Port Adelaide. I have had the pleasure of knowing Zoe Bettison more closely for nearly 20 years, and I know she will bring to the parliament a personable, strong work ethic and a passionate commitment to her electorate. Indeed, both Zoe and Susan are intelligent and passionate women who will ensure that their constituencies are well represented in our parliament.

Members interjecting:

The Hon. CARMEL ZOLLO: It is really very amusing what those opposite have to say. I am sure that none of their candidates, when they present themselves for Liberal seats, are known to the Liberal Party; they must be totally anonymous to them. I congratulate both those women, and I am certain both will have long and distinguished careers.

I am very pleased to be a member of the committee for the Address in Reply, and I again congratulate the Governor, His Excellency Rear Admiral Kevin Scarce, for his delivery of the opening speech on the occasion of the opening of the second session of the 52nd parliament.

The Hon. G.A. KANDELAARS (17:53): I rise to congratulate and thank the Governor, His Excellency Rear Admiral Kevin Scarce, for his address on the opening of the 52nd parliament's second session. I take this opportunity to acknowledge the very many good works of our Governor and his wife, Liz Scarce. They have certainly endeared themselves to the South Australian community and have lent their support to many deserving causes. They represent this state and its interests with distinction. I am sure all members agree with the extension of the Governor's appointment to 2014.

I must also acknowledge and thank Uncle Lewis O'Brien, a Kaurna elder, for his welcome to country. I would like to acknowledge the expected election in the other place of Susan Close to the seat of Port Adelaide and Zoe Bettison to the seat of Ramsay. I am sure they will be outstanding members and represent their constituents well.

Yesterday, the Governor outlined the future vision of the Weatherill government, a future that is bright. The government has set out seven primary areas of focus in its action. They are: clean green food industry, the mining boom and its benefits, advanced manufacturing, a vibrant city, safe and active neighbourhoods, affordable living, and early childhood. I wish to comment on a number of these, the first being advanced manufacturing.

Back in the 1950s, the South Australian economy was largely based on agriculture. Tom Playford was determined to create a new manufacturing base for our economy underpinned largely on the car industry. Times were different, tariffs were high, and electricity, land and labour were all very cheap. The Weatherill government believes that the development of South Australia's advanced manufacturing will play a key role in our future prosperity.

Playford certainly succeeded in his work. The manufacturing that developed in South Australia underpinned South Australia's growth and prosperity for decades. If there is one thing that is certain in life and in politics, it is change. In the 1980s, Australia undertook massive reform to modernise and internationalise our economy. The burden of adjustment fell heavily on South Australian manufacturers. While many adapted, many did not, and the jobs went with them.

The Weatherill government is looking to attract investment that will once again transform the South Australian economy. This time, we will revitalise our existing manufacturing base to one based on advanced manufacturing. We will build on the skills, ambitions and enthusiasm of our local industry to create a manufacturing industry that is innovative and focused on high value products.

Our defence industries will be vital to this transformation. A vibrant defence sector is absolutely essential to the state's future. Already, South Australia is home to more than a quarter of our defence industries. Just to put that in perspective, we have around 8 per cent of Australia's population and our capital city of Adelaide is Australia's fifth biggest amongst seven state capitals. In fact, we are able to deploy the best of Adelaide and South Australia to build a great defence industry. Our size is our strength: it enables us to really focus on what matters most.

We are the home of the nation's most exciting defence industries—the Australian air warfare destroyer project, the APC3 aircraft maintenance contract and the Customs' Project Sentinel, the world's largest fixed-wing, civil maritime surveillance program. We have some of the world's biggest defence contractors in South Australia—BAE Systems Australia, SAAB Australia, Raytheon Australia and Lockheed Martin, just to name a few.

We also have many small specialist companies delivering world class products and services. This has not happened by accident. It is the result of a deliberative and assertive economic strategy to create advanced manufacturing capabilities in South Australia. Defence companies can work here with confidence: the government will support them and their investment. We know that more than 80 per cent of the defence platforms in Australia will need to be replaced in the next 15 years. Australia's naval fleet will require at least 48 new vessels over the next 30 years, in addition to two amphibious ships and three Air Force destroyers currently in production.

The government has made its own investment in our state's infrastructure and people. In 2010, the state government launched Techport, a world-class maritime building facility. Techport has already become Australia's naval industry hub, supporting the construction of the three air warfare destroyers. Techport is likely to be the base for the construction of Australia's next generation of submarines, a project that has the capacity to become Australia's largest ever defence project.

The $300 million investment in Techport—in state-owned infrastructure—is strong proof of the government's commitment to the future of defence industries in South Australia. Defence is already one of South Australia's biggest employers, and the government is planning for its continued growth.

In terms of training and development, $200 million has been set aside for a program called Skills for All. It will assist 100,000 South Australians to gain skills they need for good employment and industry to get the workforce it needs, but Skills for All is not an unprecedented investment in our workforce. It is a strategy that recognises that it is not simply to assist people into further educational training places: their efforts to learn new skills must be rewarded with jobs they can use.

It is recognised that industry wants people with the right skills for their business. In South Australia the government put in place a defence workforce action plan so that both the government and the defence industries know what demand for skills we will need now and in the longer term, so we can properly plan for the delivery of those skills. The government's investment in Techport includes the Maritime Skills Centre, which has been done to deliver the trade and technical skills needed for the air warfare defence project.

If we wish our state to continue to grow, then our future will be increasingly in industries that require a highly skilled and technically proficient workforce. South Australia has an exciting future ahead of it. Our defence industry is booming. We are on the verge of one of the world's great resource titans and our clean green technology and renewable energy sector is growing rapidly. We are poised to gain enormous expansion of our mining and resources sector. We could look at this expansion and feel that our job is done.

We could be satisfied that we set in motion a mining boom to rival Queensland and Western Australia that will make our state one of the world's great resource titans. It is the government's intention to make sure every South Australian benefits from mining. Mining is a catalyst for the transformation of our whole economy. We must ensure that every South Australian can share in this vision.

The 2011 major development directory lists $65 billion of investment in minerals and resources in South Australia. More South Australian mines are approved every year and exploration for new prospects continues to go at a great pace. In the 12 months to September last year expenditure on mineral exploration increased by nearly 70 per cent from the previous year.

When restrictions on exploration in the Woomera prohibited area are lifted, we can expect further increases, and now we are turning our enormous expansion in exploration into huge growth in mining. In the last financial year South Australian mineral exports were $4.22 billion, a massive increase from $2.85 billion only a year before, and more than triple the value of mineral exports at the turn of the century.

Late last year this parliament passed legislation to enable the expansion of Olympic Dam, which will be the biggest single investment in our state's history. There is nothing more important to South Australia than our mining and resource future. The enormous expansion in our resources is not due to luck: it is the result of carefully targeted investment by government and industry. It reaches back to the work undertaken by government in the early 1990s when a groundbreaking program used public funding to map our deep buried resources and stimulate exploration.

Twenty years ago we started making smart investments in mining resources and more recently we developed another innovative program that has opened the door to mining investment, the Plan for Accelerated Exploration (PACE). PACE built on the regulatory changes to turn South Australia into an internationally recognised leader in mining laws. I must recognise the Hon. Paul Holloway for his work in this area. Paul did some marvellous work here.

Over the last seven years the government has invested just under $31 million in PACE which has resulted in a net benefit of $300 million. It is a great example of how well-targeted government support can result in significant investment. If we are to realise the true value of mining, it must be as a driver for economic growth, not solely responsible for it. We cannot separate mining and resources from the rest of our economy. We need to truly integrate mining and resources into our whole economy. In particular, our manufacturing sector must be able to use the expansion of the resource sector as a springboard into products, new markets and long-term philosophies.

This integration starts with government. The government has brought resources and energy together with trade and manufacturing to make stronger links between the sectors that generate demand for advanced manufacturing with those that can supply it. An integral part of this new department is innovation because it is innovation that will drive advanced manufacturing—manufacturing that relies upon value, not cost, for its future.

We cannot simply expect mining companies to choose South Australian contractors and suppliers. The government can require mining companies to consider it, as we have done with BHP Billiton, but we cannot make South Australian businesses into suppliers of choice. Ultimately, it will be up to each company to put themselves in that position. What the government can do is make it possible for South Australian businesses to become suppliers of choice to companies like BHP. As we have done with the resource sector, we can make sure that our government structures and regulatory regimes support this. We can invest in the infrastructure and skills that are needed and use our procurement powers to help develop new ideas and link them to the wider market, starting with the resource industry right here in our own state.

On the issue of Adelaide, the vibrant city, I wish to make a few comments. I see the revitalisation of the city as crucial to our future. A new Adelaide Oval, a redeveloped Riverbank precinct and a new hospital are a few of the initiatives that the government is undertaking to revitalise our capital city. Another initiative is the extension of public holiday trading in the CBD. These and other initiatives are bringing a new lease of life to the centre of Adelaide. The government is committed to creating a truly vibrant city, a city that is both energetic and dynamic.

Before I conclude, I acknowledge the tremendous contribution made to this parliament by former premier the Hon. Mike Rann and former deputy premier the Hon. Kevin Foley. I am sure history will recognise the great role they have played in making South Australia a great place to live. When I look at Mike Rann I think that very few people would have survived as party leader for as long as Mike did. I think it was something in the order of 17 years. It is a true indication of his leadership qualities. In terms of Kevin, you always knew his view. He did not mince his words. Some would say it was one of his great strengths and others would say the opposite, but he was certainly a great treasurer. I wish both Mike and Kevin all the best in their new endeavours, as they have made a tremendous contribution to this state.

In conclusion, as a government we need to work together towards many goals, often simultaneously, and address many of the key concerns that face our modern society, including economic stability and growing advanced manufacturing, creating opportunities for our children, tapping into the mining boom, marketing our clean green food, maintaining community safety and having a vibrant city.

These represent a core challenge, building the capacity to efficiently and seamlessly shift gear as circumstances change. To create this capacity, we must embrace the fact that our world is a system of opportunities, challenges and risks, and that it is dynamic rather than static. In the past we have relied on traditional structures, siloed portfolios and centralised policy advice to deal with the world that has changed in a different way and at a much slower rate. What we require is fundamental, long-term change to a system that is dynamic enough to seek and build new knowledge and experience, and absorb into it our operating structures. That concludes my remarks.

Debate adjourned on motion of Hon. D.W. Ridgway.